L&T Q4 FY26: Profit Down 3%, Orders at Record ₹7.4L Cr

Key takeaway from L&T’s March-quarter print

Larsen & Toubro (L&T) reported a year-on-year decline in consolidated net profit for Q4 FY26, even as revenue growth stayed firm and ordering remained strong. The engineering and construction major said the drop in reported profit was largely because the comparable quarter last year included an exceptional gain. Operational performance was supported by steady execution across businesses, with international revenues forming a majority share of the quarterly topline. Order inflows and the order book continued to scale, led by overseas wins. The board also recommended a final dividend for FY26, subject to shareholder approval.

Q4 FY26 results: profit down, revenue up

For the quarter ended March 31, 2026, L&T posted consolidated net profit of ₹5,326 crore, compared with ₹5,497 crore in Q4 FY25. This translated to a decline of about 3 percent year-on-year (also reported as 3.1 percent in disclosures). In contrast, consolidated revenue from operations rose 11 percent year-on-year to ₹82,762 crore, driven by execution momentum across businesses. The company highlighted that performance was broad-based, although some segments saw different growth rates. International business remained a key pillar for the quarter’s revenue mix.

Why reported PAT fell despite growth in activity

L&T attributed the year-on-year decline in consolidated profit after tax primarily to the impact of an exceptional gain recorded in the corresponding quarter last year. The exceptional gain in Q4 FY25 was ₹475 crore, creating a higher base for comparison. On an adjusted basis, the company disclosed that recurring PAT for Q4 FY26 stood at ₹5,289 crore, up 5 percent year-on-year. In its analyst presentation, L&T said recurring PAT growth was supported by higher activity levels and treasury management, partly offset by losses from joint ventures. It also noted that Q4 FY26 exceptional items included a part reversal of labour code provision, while Q4 FY25 included a partial reversal of an earlier impairment.

International revenue stays dominant in the mix

International revenues in Q4 FY26 were ₹43,747 crore, contributing 53 percent of total quarterly revenue. This split underlined L&T’s reliance on overseas execution for scale and diversification. Management reiterated its focus on international opportunities as part of its growth strategy. The international component was also evident in ordering, where overseas wins formed a majority of the quarter’s inflows. The company has repeatedly positioned international markets as an area where it sees sustained opportunities.

EBITDA up 5%, but margins moderated

Operationally, EBITDA for the quarter increased about 5 percent year-on-year to ₹8,611 crore (also reported as ₹8,610 crore in some summaries), compared with ₹8,203 crore in Q4 FY25. However, EBITDA margin contracted to 10.4 percent from 11 percent a year earlier. L&T linked the margin moderation to cost pressures and execution mix. The analyst presentation also flagged that while Energy Projects benefited from execution progress on a large order book, margins were impacted by cost overruns and close-out costs in legacy projects. The company’s quarter thus showed a combination of volume-led growth and margin pressure.

Order inflows and order book: visibility improves

Order inflows for Q4 FY26 were ₹89,772 crore, with international orders at ₹59,994 crore, or 67 percent of quarterly inflows. L&T said it secured several high-value orders across commercial and residential buildings, roads and runways, urban transport, transmission and distribution, and hydrocarbon onshore businesses. The consolidated order book stood at a record ₹7,40,327 crore as of March 31, 2026, up 28 percent year-on-year. International orders made up 52 percent of the overall order book. The scale of the order book was presented as a source of revenue visibility.

Full-year FY26: order inflow growth outpaces revenue

For FY26, L&T reported order inflows of ₹4,35,590 crore, up 22 percent year-on-year. Consolidated revenue for the full year grew 12 percent to ₹2,85,874 crore. The difference between order inflow growth and revenue growth suggests continued build-up in executable backlog through the year. Management said the year closed on a strong note with broad-based performance across segments. It also reiterated focus areas such as technology-led growth and capital discipline.

Dividend, record date, and board decisions

The board recommended a final dividend of ₹38 per share (face value ₹2 each) for FY26, subject to shareholder approval. L&T fixed May 22, 2026 as the record date for determining shareholder entitlement for the proposed final dividend. Separately, the board approved the appointment of P. Ramakrishnan as chief financial officer and key managerial personnel with effect from July 1, 2026. Current CFO R. Shankar Raman will cease to be CFO from the close of business hours on June 30, 2026, while continuing as President and Whole-time Director – Finance, subject to approvals.

Asset exits: Hyderabad Metro and Nabha Power

L&T also reiterated its longer-term plan to exit non-core assets with back-ended returns, and some owned-and-operated assets. During FY26, the company signed agreements to exit Hyderabad Metro, selling its stake back to the Government of Telangana for ₹1,461 crore. It also sold the Nabha Power plant to Torrent Power for ₹6,889 crore, including debt. Chairman and Managing Director S.N. Subrahmanyan said the two divestments are expected to close by the end of the April-June quarter.

Market reaction: stock ends lower on the day

On the day of the results, shares of L&T ended 0.63 percent lower at ₹4,075 on the NSE. The stock has risen over 22 percent in the past year, outperforming the Nifty 50, which has fallen nearly 2 percent over the same period. The market action reflected a mix of factors: headline profit decline due to base effects, margin contraction, and continuing strength in ordering and backlog.

Key numbers at a glance

What investors may track next

The near-term focus is likely to remain on execution pace, margin trajectory amid cost pressures, and conversion of the record order book into revenue. Investors will also track progress on the expected closing of the Hyderabad Metro and Nabha Power divestments by the end of the April-June quarter. Another key event is the CFO transition effective July 1, 2026, and any commentary around capital discipline and treasury management. With international business driving both revenue mix and order inflows, updates on overseas execution and risk management will remain important.